UFS»Topics» DOMTAR CLOSES TRANSACTION WITH WEYERHAEUSER CREATING NORTH AMERICAN LEADER IN FINE PAPER

DOMTAR CLOSES TRANSACTION WITH WEYERHAEUSER CREATING NORTH AMERICAN LEADER IN FINE PAPER

Montreal, March 7,
2007  Domtar Inc. announced today the completion of the previously announced transaction to combine with Weyerhaeuser Companys Fine Paper business and related assets, creating Domtar Corporation. Domtar Corporation is the largest
manufacturer and marketer of uncoated freesheet paper and a leading manufacturer of market pulp in North America. The Companys Head Office is located in Montreal, Quebec and its Operations Center is in Fort Mill, South Carolina.

With a strong team of nearly 14,000 employees dedicated to creating value for customers and shareholders, a world-class manufacturing capability and a solid
financial position, Domtar becomes the North American leader in the fine paper business, said Raymond Royer, President and Chief Executive Officer of Domtar Corporation. The combination of knowledge and expertise in the design,
manufacturing, marketing and distribution of fine paper gives the Company, which will benefit from its efficient assets located across the United States and Canada, clear competitive advantages in the breadth and quality of products and services we
offer. We will provide long-term value to our shareholders, customers and employees, within an industry in rapid consolidation.

Marvin Cooper,
Executive Vice-President and Chief Operating Officer, added: Domtar is built on a solid foundation of rigorous leadership, established brands and recognized service solutions. We will focus our efforts on meeting the needs of customers and
ensuring a quick and seamless transition to the new organization. Also, with an experienced management team with proven integration expertise, we will review all our operations to determine how best to execute the synergies resulting from the
transaction.